Australian Energy Market Operator

AEMO operates Australia's National Electricity Market (NEM), the interconnected power system in Australia’s eastern and south-eastern seaboard, and the Wholesale Electricity Market (WEM) and power system in Western Australia.

AEMO operates gas retail markets in New South Wales and the Australian Capital Territory, Queensland, South Australia, Victoria, and Western Australia. AEMO also operates wholesale gas markets in south-eastern Australia, those being the Declared Wholesale Gas Market in Victoria (DWGM), the Short Term Trading Market in Adelaide, Brisbane and Sydney (STTM), and the Gas Supply Hub (GSH), whose trading locations are based at Wallumbilla in Queensland, and Moomba in South Australia. AEMO also operates the Natural Gas Services Bulletin Board (GBB), and is system operator of the Victorian Gas Declared Transmission System. AEMO is also responsible for Gas Services Information functions in Western Australia.

Economic investment test to facilitate energy transition

ElectraNet, in consultation with other transmission network service providers (TNSPs), has commenced an economic cost benefit assessment to explore options that can help to facilitate South Australia’s energy transition. The Regulatory Investment Test for Transmission (RIT-T)1 will be applied to this assessment. This report begins the formal consultation part of the RIT-T process.

The identified need for this RIT-T is driven by allowing greater competition between generators in different regions, improving security of electricity supply in South Australia, facilitating the transition to lower carbon emissions and the adoption of new technologies.

Four interconnector options proposed to be assessed

ElectraNet has identified four credible network options, all of which involve constructing a new interconnector between South Australia and a neighbouring state. The four interconnectors under consideration are

Non-network options will also be evaluated

Non-network options can also provide benefits to the market and help with energy market transition, particularly in relation to system security.

Non-network options could provide inertia, fast frequency response and/or voltage response capabilities to increase interconnector capacity and so that supply disruptions could either be avoided or substantially reduced.

Technological advances with respect to controllable demand and storage mean that there may be a broader range of potential non-network options than previously was the case.

ElectraNet is interested to hear from non-network proponents

ElectraNet is interested to hear from potential proponents of non-network options. ElectraNet will use the information provided in submissions to further develop non-network options for inclusion in the next stage of the RIT-T assessment process.

Next steps

ElectraNet welcomes written submissions from registered electricity market participants and interested parties on the PSCR, which is available for download from www.electranet.com.au.

Submissions are due on or before Monday 6 February 2017. Submissions are particularly sought on the investment options presented and from proponents of potential non-network options.